Retail giant Macy’s (M) received a couple of price target cuts to its stock following a downbeat first-quarter earnings report. Macy’s shares were hammered Wednesday after the company posted mixed results and lowered guidance.
Meanwhile, Goldman Sachs initiated coverage on a host of companies in IBD’s Containers-Packaging Industry Group, with Berry Plastics Group (BERY), Graphic Packaging (GPK) and Sealed Air (SEE) rated as buy.
RBC Capital Markets maintained its sector perform rating on Macy’s stock, but cut its price target to 35 from 42.
Telsey Advisory Group reiterated its market perform rating on Macy’s, but trimmed its price target to 36 from 44.
Macy’s on Tuesday reported soft sales and slashed its full-year forecast, sending its stock diving to a four-year low Wednesday. It finished the session down 15.2% to 31.38.
Macy’s stock fell 0.7% in morning trade on the stock market today.
The Cincinnati-based company said sales fell 7.4% year over year to $5.77 billion. Wall Street was looking for $5.93 billion.
For 2016, Macy’s now expects sales at stores open more than a year to fall 3% to 4%, compared with its prior guidance for a 1% decline.
Berry Plastics, Graphic Packaging, Sealed Air
Investment bank Goldman Sachs initiated coverage on a half-dozen companies in the packaging and container sector. It rated as buys: Berry Plastics, price target 50; Graphic Packaging, price target 17; and Sealed Air, price target 59.
On the stock market Wednesday, Berry closed at 37.95, Graphic Packaging at 13.21, and Sealed Air at 46.64.
Berry Plastics rose 2.7%, Graphic Packaging 3.2% and Sealed Air 2.4% intraday.
Goldman was negative on Owens-Illinois (OI), rating the glass container company as sell with a price target of 18. Owens ended regular trading Wednesday at 19.42. Owens-Illinois lost 0.9% intraday.
IBD’s Containers-Packaging Industry Group is ranked No. 64 out of 197 groups for performance on the stock market.
In a report, Goldman Sachs analyst Brian Maguire said he finds the U.S. packaging sector attractive because of the group’s stable margins, strong cash flows and M&A opportunities.
JPMorgan initiated coverage of conglomerate General Electric (GE) with an underweight rating and a price target of 27.
Fairfield, Conn.-based GE fell 0.5% to 30.34 on Wednesday, then fell 1% in morning trade Thursday.
GE stock hit an eight-year high of 32.05 on March 31.
Stifel reiterated its buy rating on video game publisher Electronic Arts (EA) and raised its price target to 82 from 81.
EA stock rose 13.7% to 73.38 on Wednesday after reporting better-than-expected March quarter results. Electronic Arts added 1.1% in morning trade.
EA credited “Star Wars Battlefront” and sports games, such as “Madden NFL 16” and “FIFA 16,” for its gains in its fiscal fourth quarter.
SunTrust Robinson Humphrey upgraded shares of WebMD Health (WBMD) to buy from neutral.
Last week, the health information services firm reported better-than-expected first-quarter sales and earnings. WebMD earned 36 cents a share on sales of $158.5 million. Analysts polled by Thomson Reuters expected earnings of 33 cents a share on sales of $156.6 million.
On a year-over-year basis, WebMD’s per-share earnings rose 44% while sales climbed 11%.
WebMd shares rose 1.9% intraday.